“To the fans, thank you. The support you have provided over the years has been truly humbling. It has been an honour and an enormous privilege to have had the opportunity to lead your club and I have treasured my time as manager of Manchester United.”

Ferguson scheduled a meeting to break the news to staff at the club’s Carrington training ground at 9.30am and will hold an interview with United’s in-house television station, MUTV, at 10.30am.

Everton manager David Moyes has been installed as the bookmakers’ favourite to succeed the Scot while Real Madrid boss Jose Mourinho is also among the favourites to take over at Old Trafford.

The announcement of Ferguson’s decision to retire came after intense speculation following a golf match between United players and coaches at Dunham Massey on Tuesday.

Ferguson has long been planning for his succession and has consistently cited his health as the decisive factor in the timing of his retirement. He had a pacemaker fitted in 2004 and United confirmed last week that he would undergo hip surgery in August.

David Gill’s decision to stand down as chief executive this summer saw Ferguson lose a close ally within the club and there had been suggestions that he came close to quitting at the end of last season losing out on the Premier League title to rivals Manchester City.

Ferguson previously expressed his regret over announcing his retirement before the end of the 2001-02, which he felt led to poor on-pitch performances and resulted in a U-turn after he had a change of heart.